Tom Clarke: $900 Million in Financing for Mesabi Metallics

Updated: June 29, 2018 05:38 PM

A day before the state-mandated deadline for closing on financing, Tom Clarke provided an update about the money.

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In a statement, it said, "Mesabi Metallics has closed on its debt and equity funding providing $900 million of new capital to complete construction of the newest Pellet Plant in North America located in Nashwauk, Minnesota." The documents have been submitted to the state.

The statement goes on to say that Mesabi's sponsors have completed the preliminary engineering with Tenova S.p.A. for the construction of a state-of-the-art pig iron plant on the Nashwauk site. It also highlights the previous agreement to allow the USW to organize the mining, pelletizing, and Pig Iron plant hourly employees.

"Mesabi is deeply grateful for the support of the people and the elected representatives of the Iron Range, the USW, our vendors and contractor partners, the State of Minnesota, and Governor Dayton and his staff," the statement reads.

"Merida Natural Resources, a mining company owned by Tom and Ana Clarke and its investment partner Nubai Global Investment Limited, successfully confirmed a Plan of Reorganization for Mesabi on June 13, 2017, and emerged from bankruptcy on December 22, 2017. To date, Merida and its partners have invested $280,863,301 in the project, including the purchase of the Superior Mineral Resources within our project boundaries. Holders of mechanic liens have received $46,328,820 in payments, a third of which was paid in full three years ahead of the requirements."

The DNR told Eyewitness News that there are still certain steps that need to be taken before the mineral leases at the site could be re-instated to Clarke and Mesabi Metallics.